A guaranteed mortgage is exactly what it sounds like: a mortgage with a guarantee from the lender that you will be able to make your monthly payments. A guarantee can be valuable if you know you'll have difficulty making your loan payments in the event of an unexpected financial setback.
If you're considering an assurance with a mortgage guarantee (which is also known as seguro con garantia hipotecaria in Spanish language) , be sure to ask about the terms and conditions of the offer before signing anything.
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It is no secret that a mortgage can be a huge investment, so it's important to understand all the terms and conditions involved in a guaranteed loan. Here are the key points to know:
A guaranteed mortgage is a type of mortgage where the lender guarantees repayment of the loan. This means that, even if you cannot repay the full amount of the loan, the lender will still be responsible for repaying your loan.
The guarantee period for a guaranteed mortgage is typically between 10 and 20 years. During this time, the lender has agreed to pay your monthly mortgage payments should you fail to make them on your own.
A guaranteed mortgage is a type of mortgage that guarantees the borrower's principal and interest payments. This type of mortgage is usually more expensive than other types of mortgages, but it offers a higher degree of security.
The cost of a guaranteed mortgage depends on the terms offered and the credit history of the applicant. A basic guaranteed mortgage typically costs about 3 percentage points more than an unsecured loan, but rates can be as high as 6 percentage points more for loans with better terms.